| |
| The Tax Publishers2020 TaxPub(DT) 5521 (Chen-Trib) INCOME TAX ACT, 1961
Section 14A
Since assessee claimed that it had not earned any exempt income during the relevant period, the fact of which was not disputed by Revenue, there was no reason to interfere with the order of CIT(A).
|
Disallowance under section 14A - Expenditure incurred against earning of exempt income - No exempt income earned by assessee -
AO reopened the assessment and completed the reassessment under section 143(3) read with section 147, making disallowance under section 14A read with rule 8D and restricting the brought forward loss. CIT(A) held that disallowance under section 14A read with rule 8D can be made only when there was exempt income. Only those investments which yielded exempt income during the relevant assessment year ought to be included for the purpose of average value of investment for computing disallowance as per third limb of rule 8D(2) and accordingly directed AO to recompute the applicable disallowance under section 14A read with rule 8D. Held: Since assessee claimed that it had not earned any exempt income during the relevant period, the fact of which was not disputed by the Revenue, there was no reason to interfere with the order of CIT(A).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2009-10
IN THE ITAT, CHENNAI BENCH
 SUBSCRIBE FOR FULL CONTENT
|